I HATE camping, but I still made some money while helping a terrific company.

Time for a mezz thread!
I own a comfortable, dry bed so why would I want to camp? When I think of camping the following comes to mind;
So I was naturally skeptical when I received a call one day to try and help a “glamping” company (If you’ve read about glamping in the WSJ then you’ve read about the company).
Their basic strategy is to put glamping sites outside of national parks.

After the capital outlay, the margins are “healthy.” However, there is severe seasonality to the business. They have to make basically all their money between spring and fall.
They want to expand, it’s a nice business with plenty of collateral. I genuinely like the management team (they are passionate and capable).

So I put in a term sheet for a 2 year deal.

Their response?
I’m totally frustrated at this point (I’d proposed exactly what they asked for) and decide to walk away.
After a few weeks off, we touch base again and it turns out their needs have changed. They are bringing in a PE partner (didn’t tell us about that before) but they are interested in a bridge until that closes.

Personal note: Stay Flexible
We work out a short term bridge which they repay 6 months later.

Final economics: 34.5% IRR with a NPV equivalent to 15 months of the original term sheet.
Final note: I haven’t been camping since.

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More from @SkolCapital

1 Sep
Next time (I know...) you are in an Apple ($AAPL) store, I want you to look at the tables. Seriously, look at them.

Why? It’s time for another mezz thread (this time with some pictures!) Image
Local company does about $75 Million a year (sales) of high-end wood work. Think corporate offices and the Sun Valley lodge...

Oh, the other half of their business is they do every table in every Apple store - worldwide. Image
More than a few years ago they are doing a large corporate office for a Fortune 500 company in Oklahoma City. If you’ve been to Oklahoma City you know the building I’m talking about.

Long story short, that deal goes bad and the local supplier ends up losing $1.5 on that deal. Image
Read 10 tweets

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